Application of the Equipment Replacement Dynamic Programming Model in Conveyor Belt Replacement: Case Study of a Gold Mining Company

David C. Zvipore, Philimon Nyamugure, Daniel Maposa, Maseka Lesaoana

Abstract


As assets age, they generally deteriorate, resulting in rising operating and maintenance costs and decreasing salvage values. In this paper a comprehensive Dynamic Programming-based optimisation solution methodology is used to solve the equipment replacement optimisation problem on the replacement of conveyor belts at a Gold Mining company in Zimbabwe. Given a mining setup with one and two-year old conveyor belts the ultimate objective is to keep or replace the conveyor belt such that the overall cost of material handling is minimised within a five-year period. The findings reveal that this mining system should replace conveyor belts yearly. It is concluded that, an equipment replacement policy for conveyor belts is a necessity in a mining system so as to achieve an optimal contribution to the economic value that a mining system may accrue within a period of time.

DOI: 10.5901/mjss.2015.v6n2s1p605


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This work is licensed under Creative Commons Attribution 3.0 License.

Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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